SMEs set to boost the economy

A new study suggests contributions from Small and Medium-sized Enterprises (SMEs) in the UK’s top ten cities will grow by an average of 19 per cent.

Currently, SMEs based in the UK contribute £202 billion to the economy, with the most contributions coming from businesses based in London.

However, researchers from both the Centre for Economics and Business Research (CEBR) and Hampshire Trust Bank have forecast that by 2025, the amount SMEs contribute will increase to £241 billion.

Furthermore, they have said that the amount contributed by businesses in Leeds and Greater Manchester is expected to see the fastest growth, at 26 per cent. This will be followed by Bristol, which is likely to increase by 23 per cent.

Other predictions suggest that London, Tyneside, Birmingham, Edinburgh, Glasgow, Cardiff and Sheffield are all set to grow by more than 14 per cent.

Nina Skero, managing economist at CEBR, said: “This study demonstrates how SMEs are making a vital contribution to city economies across the UK.

“The importance of SMEs is on the rise, therefore we hope this research will boost confidence among business leaders in the UK so they may continue to support job creation and capitalise on opportunities for growth.”

The research also considered how SMEs perceived business growth, and found that more than a third of SMEs felt that business growth expectations had decreased since the announcement that the UK would be leaving the European Union (EU).